Trinseo (TSE) Q1 2025 earnings summary

Executive summary

• Q1 2025 net loss was $79 million (EPS of -$2.22), with adjusted EBITDA rising to $65 million, up $20 million year-over-year, driven by $26 million in polycarbonate licensing income and restructuring actions.

• Free cash flow was negative $119 million, reflecting seasonal working capital build and $25 million in refinancing costs; quarter-end cash was $128 million and total liquidity $421 million.

• Major debt refinancing completed, extending nearest maturity to 2028 and improving liquidity, with $416.8 million available at quarter-end.

• Transformation strategy continues, with focus on cost reduction, innovation, sustainability, and geographic expansion.

• Seven consecutive quarters of year-over-year adjusted EBITDA improvement.

Financial highlights

• Q1 2025 net sales were $785 million, down 13% year-over-year due to lower volumes and price declines.

• Adjusted EBITDA was $65 million, up from $45 million in Q1 2024, mainly due to $26 million in polycarbonate licensing income and restructuring savings.

• Free cash flow was negative $119 million, impacted by working capital build and refinancing costs.

• Gross profit increased to $63.8 million from $60.6 million year-over-year.

• Interest expense increased to $66.6 million from $63 million year-over-year.

Outlook and guidance

• Q2 2025 net loss expected between $61 million and $46 million; adjusted EBITDA guidance of $55 million to $70 million, with breakeven free cash flow expected.

• Full-year 2025 guidance withdrawn due to increased economic, tariff, and geopolitical uncertainty.

• Company believes liquidity and capital resources are sufficient for at least the next twelve months.